Wilh. Wilhelmsen Holding ASA 3Q Results for 2012
Wilh. Wilhelmsen Holding ASA’s profit was lifted by a gain from sale of shares in Hyundai Glovis in the third quarter. Profit from operations was down from a strong second quarter following less cargo volumes and a generally weak shipping market.
Operating profit for the third quarter was USD 260 million (USD 175 million). Excluding USD 134 million sales gains related to Hyundai Glovis and last year’s gain from Qube, operating profit was USD 127 million (USD 105 million), a decrease of 9% from the second quarter, although up 21% from last year.
“The contribution from our shipping investments in Wilh. Wilhelmsen ASA (WWASA) was somewhat down in the third quarter, affected by reduced high and heavy volumes together with decreased Korean car exports due to strikes. Higher logistics volume, however, contributed positively to total income. WWASA remains solidly positioned for further volume growth in cars and high and heavy segments,” says Thomas Wilhelmsen, group CEO of WWH.
Wilhelmsen Maritime Services’ (WMS) income was 5% down from the previous quarter. The drop was due to lower product sales within ships services and reduced demand within the technical solutions business area. Ship management continued to develop positively.
Thomas Wilhelmsen states that WMS has an underlying growth potential. “The growth in the global merchant fleet is expected to continue and we are positioned to increase market penetration and offer new products. A generally weak shipping market, however, impacts owners’ purchasing capabilities and demand for certain maritime products and services. We expect the profit margin short term to remain somewhat below our 9% target.”
WWH acquired 35.4% of NorSea Group in June 2012. WWH’s share of net profit in NorSea Group was USD 2 million in the third quarter, supported by increased income from supply base activities.
Based on sound underlying performance and realisation of gains, the WWH board proposes a second dividend of NOK 4.50 per share to be paid on or about 27 November depending approval at the extraordinary general meeting 13 November. A first dividend of NOK 3.50 per share was paid on 9 May.
The board expects shipping volumes to stabilise short term due to a weaker global economy and the general shipping markets to remain subdued into next year. However, continued investment in new efficient tonnage, increased logistics footprint and potentials within the offshore industry create new opportunities for growth and profit.
The board maintains a cautiously optimistic view on medium term prospects, but underlines that prospects will depend on the development of the world economy and the general shipping markets.
Source: Wilh. Wilhelmsen Holding ASA
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